Article Text Size

In Pictures: SAC Capital fund manager charged in insider trading case

Globe and Mail Update

March 26, 2017March 29, 2013

Michael Steinberg, a portfolio manager at Steve Cohen's $15-billion SAC Capital Advisors, was arrested by the Federal Bureau of Investigation at his home in New York City early Friday morning in connection with a long-running insider trading investigation of the hedge fund, a FBI spokesman said.

Mr. Steinberg, a portfolio manager at Steve Cohen's $15-billion SAC Capital Advisors, leaves Manhattan Federal Court in New York March 29, 2013. He was arrested by the Federal Bureau of Investigation at his home in New York City early Friday morning in connection with a long-running insider trading investigation of the hedge fund, a FBI spokesman said.

Federal prosecutors are charging Mr. Steinberg, 40, with using inside information to make trades in shares of Dell Inc. and chipmaker Nvidia Corp. that generated about $1.4-million in illegal profits for Cohen’s hedge fund.

The arrest comes two weeks after SAC agreed to pay a record $616-million to the SEC to settle civil charges of insider trading. SAC neither admitted nor denied wrongdoing at that time. As part of that settlement, SAC Capital agreed to pay $14-million to settle charges of improper trading in Dell.